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Document of
 
The World Bank 
 
Report No: 59001-UY 
 
RESTRUCTURING PAPER 
 
ON A 
 
PROPOSED PROJECT RESTRUCTURING  
 
OF 
 
INSTITUTIONS BUILDING TECHNICAL ASSISTANCE LOAN (IBTAL) 
PROJECT  
Approved on May 30, 2007 
 
TO THE 
 
REPÚBLICA ORIENTAL DE URUGUAY 
 
February 8, 2011 
 
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Regional Vice President:
Pamela Cox 
Country Director:
Penelope J. Brook 
Sector Manager / Director:
Veronica Zavala 
Task Team Leader:
Amparo Ballivian 
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URUGUAY 
—
INSTITUTIONS BUILDING TAL (IBTAL) - P097604 – LOAN 7451 
 
Restructuring Paper 
Extension of Closing Date 
 
1.  The closing date for 
Uruguay, Institutions Building TAL, P097604 
will be extended
 
from December 31, 2011 until September 30, 2013.   
2.  The proposed extension is necessary to complete activities which will substantially 
contribute to the achievement of the project development objectives to improve 
public sector performance. Among the most important activities are: 
i. 
software development for a risk management system for case selection in the 
Tax Advisory and Revenue Department (
Asesoría Tributaria y Recaudación 
-
ATyR
)
of
the Social Protection Agency (
Banco de Protección Social – BPS
), 
ii. 
development of a purchasing management system for the Centralized 
Procurement Agency (
Unidad Centralizada de Adquisiciones - UAP
), and 
iii. 
completion of the ongoing SIIAS (
Sistema Integrado de Información para el 
Área Social)
 construction and its implementation. 
3.  The delay in project implementation is due to a one-year delay of project initiation, 
and extended preparation of the procurement processes for the activities mentioned 
above. The calls for expression of interest for the software development and the 
purchasing management system are currently in process. Implementation of the 
contract activities is estimated to take 18 months, and would be completed in late 
2012 or early 2013. The requested closing date of September 30, 2013 takes into 
consideration further possible delays in contract processes and implementation. 
Similarly, activities under other project components are scheduled to be completed in 
2012 and 2013. While fully expected to be awarded as per Annex 1, in order to be 
fully financed out of the Project, these contracts will need to be awarded by June 1, 
2012.  
4.  As reported in the mid-term review in 2010 and the last ISR, the project has made 
significant progress through the: i) introduction multi-year budgeting, ii) 
advancement in e-Government, iii) successful implementation of tax reform and 
adoption of online filing and processing of income tax statements in BPS, iv) 
agreement on data transfers and design of social indicators for the SIIAS, v) passage 
of the Capital Markets Law and restructuring of the regulating agency for capital 
markets, and vi) passage of the Bankruptcy Law.   
5.  Progress towards achieving the Project Development Objectives (PDO), as well as 
overall project implementation, have been rated either satisfactory or moderately 
satisfactory since the beginning of the project execution, and are currently both rated 
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4
satisfactory. The PDO remain achievable. The performance of the implementation 
agency has been satisfactory and there are no outstanding audits or financial 
management issues. 
6.  As of August 31, 2010, 25 percent of the loan resources had been disbursed, and an 
additional 28 percent were committed, according to the project’s records. It is 
expected that disbursements and commitments will reach 80 percent by the end of 
2011.  
7.  The Bank team has reviewed the action plan for the next 2 years and is satisfied that it 
is feasible to complete the remaining tasks and achieve the project objectives within 
the proposed extension period.  
8.  This will be the first extension of the project.  
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